BP Cuts CEO's Pay by 40% After Shareholder Backlash

Business Leaders Reuters

BP has cut Chief Executive Bob Dudley's pay package by 40 percent to $11.6 million, the company said on Thursday, the latest British bluechip company to rein in executive pay after shareholder revolts.

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The nearly $8 million cut follows changes to the oil company's pay policy, including a 25 percent reduction in bonuses for reaching certain targets. Dudley's pay still remains well above that of bosses at BP's European rivals.

Shell's Ben van Beurden was awarded an 8.263 million euro ($8.8 million) pay package for 2016, a 60 percent jump year on year, while Total's Patrick Pouyanne took home 3.8 million euros last year.

Some 59 percent of shareholders last year opposed Dudley's $19.4 million pay and benefits package which was up 20 percent despite the company reporting steep losses.

Executive pay has come under scrutiny in Britain after a string of corporate scandals, such as the collapse of store chain BHS, which has prompted shareholders to become more active in rejecting bosses' pay deals.

Other large British companies, such as Reckitt Benckiser and GlaxoSmithKline, have also cut executives' pay after shareholders voiced concern about remuneration plans.

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(Additional reporting by Ron Bousso; editing by Jason Neely and Jane Merriman)